The

Telematics
Driven
Claims
Process
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Introduction
Telematics-driven usage-based insurance programs are
now available in every US state. Insurers have embraced
telematics as a tool to more effectively price risk.
The most innovative insurers are looking beyond pricing
for new ways to use telematics data. Leveraging
telematics to improve the claims process is the next
logical step.
When effectively integrated into the claims processes,
telematics:
• Reduces allocated loss adjustment expenses through
lower towing, storage, rental, inspection, and repair
costs
• Reduces unallocated loss adjustment expenses
through shorter cycle times
• Improves customer satisfaction and retention
through faster settlements and better interactions.
This guide identifies key steps in the auto insurance
claims process where telematics can have a big impact.
A fully telematics-driven claims process takes time and
resources to put in place, but this guide will help you
build a road map to get there.

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The Telematics-Driven Claims Process
Crash Scene Services

Crash Detection Instant FNOL Coverage Verification Liability Assessment

Salvage Total Loss Valuation

Repair Estimate Inspection

PI Claims Settlement Subrogation

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Crash Detection
Telematics allows insurers to identify an accident as soon as it occurs and insert themselves into the process much
earlier. The insurer is thus able to create an individualized claim plan that works for the insured and the insurer,
reducing costs and improving customer satisfaction.

Crash Detection Coverage Verification

Using vehicle behavior information, Crash data can be correlated with
including six axis acceleration data, policy information to verify coverage,
algorithms identify when an accident reducing the time policyholders must
occurs and collects this data for further spend on the phone immediately
analysis. following the crash.

Instant First Notice of Loss Liability Assessment

Once a crash has been detected,
notification is pushed to the insurer’s
FNOL team. The insurer also receives a
crash dossier detailing relevant crash
and policy data, allowing for the claims
process to begin immediately.
Insurers can understand the cause of
an accident – and assign liability – by
reconstructing the crash with telematics
data. This methodology supports a
more reliable liability assessment than
witness statements and inspection
alone.

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Crash Scene Services
Telematics supports new high-value crash scene services
that lower costs and improve satisfaction.

Emergency Response
Immediately following an accident, an insurer
can contact the driver and determine if
emergency response is required. Vehicle
location and crash severity data ensure
emergency personnel can respond effectively.

Towing
Vehicle damage analysis, included in the
crash dossier, allows insurers to quickly
assess if towing is needed. If so they can
send a preferred towing provider, avoiding
second tows and unnecessary storage fees.

Post-Crash Transportation
Early notification allows insurers to
provide policyholders with a taxi or rental
car directly from the scene of the crash.

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Assessment and Repair
By collecting data on how a vehicle moved prior to, during, and after an accident, telematics can be used to
reconstruct an accident and assess vehicle damage. With this information, insurers can reduce adjustment
resources and route the vehicle to the in-network shop best suited for the repair.

Repair Decision Inspection

Telematics data can supplement photos Telematics data allows insurers to
and statements to better identify the determine the extent of vehicle
extent of vehicle damage. Equipped damage, assess if an inspection is
with this information, insurers are better needed, and allocate inspection
able to decide if repair is warranted. resources more efficiently.

Total Loss Valuation Estimate

Improved vehicle damage estimates Vehicle damage data can be leveraged
allow you to avoid repairing vehicles for parts sourcing, labor estimations,
that should be a total loss or salvaging and repair bill audits – improving
vehicles that could be saved. estimates and reducing costs.

Salvage Repair
Proactive towing from the scene of the Proactive vendor management, vehicle
crash directly to a salvage yard damage insights, and more accurate
eliminates second towing and storage repair estimates help insurers schedule,
fees, allowing insurers to recover more manage, and improve their repair
of their losses. process – reducing costs.

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Settlement
Telematics data, photos, and driver feedback allows adjusters to
make fact-based decisions about fault and create a subrogation
packet within days, not weeks, with little adjuster intervention.

Personal Injury Claims Management

Specific markers, based on telematics data,
help insurers understand the likelihood and
severity of bodily injury and verify claims.

Settlement
Telematics data supports faster settlements,
which lowers unallocated loss adjustment
expenses and improves policyholder
satisfaction.

Subrogation
Kinetic accident reconstruction allows the
insurers to determine and assign liability and
support subrogation activities.

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The Case for Telematics-Driven Claims

Analysis of telematics ROI to-date has been faulty as it only included the impact of telematics on underwriting. By
failing to include the benefit on claims outcomes, insurers underestimate the power and real value of telematics.

Telematics-driven claims causes a powerful and positive shift in the ROI calculation. Insurers will find telematics
reduces indemnity and loss adjustment expenses significantly and concurrently, charting a new path for the total
cost versus LAE curve.

The claims process is the moment of truth in the insurer-insured relationship. How an insurer responds after an
accidents is a primary decision factor in whether a policyholder retains their insurance, or starts looking for a new
partner. Through quicker accident response, a more personalized approach to claims management, and faster
settlement, telematics-driven claims helps insurers satisfy customers at the critical moment.

As connected cars become ubiquitous, insurers have the opportunity to get ahead of their competition through a
commitment to a better claims experience. Telematics will help these innovative insurers develop a competitive
advantage in claims and be poised to capitalized on the data-driven future of auto insurance.

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About Octo

Octo is the number 1 global provider of telematics and data analytics solutions for the auto insurance industry.
Founded in 2002, Octo is one of the pioneers of the insurance telematics industry. Today, Octo is the largest and
most experienced insurance telematics company in the world, transforming auto insurance through behavioral,
contextual and driving analytics for more than 60 insurance partners. Octo has more than 5 million connected
users (as of May 2017) and the largest global database of telematics data, with over 155 billion miles of driving data
collected and 397,000 crashes and insurance events analyzed (as of 31 March 2017). Octo applies proprietary
algorithms to this market-leading database to deliver powerful new insights into driver risk, informing solutions that
benefit both auto insurance companies and policyholders. The company is headquartered in London, with offices in
Boston, Rome, Stuttgart, Madrid, and Sao Paulo.

www.octousa.com | info@octousa.com | 617-916-1080

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